Warren Resources (NASDAQ: WRES) and Memorial Production Partners (NASDAQ:MEMP) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, valuation, profitabiliy, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Warren Resources and Memorial Production Partners’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Warren Resources N/A N/A N/A N/A N/A
Memorial Production Partners N/A N/A N/A ($1.75) -0.07

Analyst Recommendations

This is a breakdown of recent ratings for Warren Resources and Memorial Production Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Warren Resources 0 0 0 0 N/A
Memorial Production Partners 3 2 0 0 1.40

Memorial Production Partners has a consensus target price of $1.40, indicating a potential upside of 1,020.00%. Given Memorial Production Partners’ higher possible upside, analysts clearly believe Memorial Production Partners is more favorable than Warren Resources.

Institutional and Insider Ownership

5.5% of Memorial Production Partners shares are owned by institutional investors. 1.5% of Memorial Production Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Memorial Production Partners pays an annual dividend of $0.06 per share and has a dividend yield of 48.0%. Warren Resources does not pay a dividend. Memorial Production Partners pays out -3.4% of its earnings in the form of a dividend.

Profitability

This table compares Warren Resources and Memorial Production Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Warren Resources N/A N/A N/A
Memorial Production Partners -51.57% -44.22% -8.73%

Summary

Memorial Production Partners beats Warren Resources on 5 of the 8 factors compared between the two stocks.

Warren Resources Company Profile

Warren Resources, Inc. is an independent energy company engaged in the exploration, development and production of domestic onshore crude oil and gas reserves. The Company’s development activities are focused on waterflood oil recovery projects in the Wilmington field in California, coalbed methane (CBM) projects in Wyoming and its Marcellus Shale project that utilizes horizontal drilling and hydraulic fracturing techniques to develop dry natural gas. The Company owns natural gas and oil leasehold interests in approximately 106,330 gross (over 80,550 net) acres. All its undeveloped acreage is located in Wyoming. It has identified approximately 140 gross drilling locations in its Wilmington field units. Additionally, it has identified over 140 gross drilling locations on its acreage in Wyoming, primarily based on approximately 80-acre well spacing and over 70 gross drilling locations in the Marcellus Shale. It has interests in approximately 570 gross (over 411.3 net) producing wells.

Memorial Production Partners Company Profile

Memorial Production Partners LP (the Partnership) owns, acquires and exploits oil and natural gas properties in North America. The Partnership is owned by its limited partners and general partner. Its general partner is responsible for managing all of the Partnership’s operations and activities. The Partnership operates in the acquisition, exploitation, development and production of oil and natural gas properties segment. Its business activities are conducted through Memorial Production Operating LLC (OLLC) and its wholly owned subsidiaries. Its assets consist primarily of producing oil and natural gas properties, and are located in East Texas/Louisiana, Rockies, Offshore Southern California, Permian Basin and South Texas. Most of its oil and natural gas properties are located in oil and natural gas reservoirs with geologic characteristics and production profiles and capital requirements.

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